cover image: MEMORANDUM  TO        :    THE FCPA COORDINATOR, CRIMINAL DIVISION, FRAUD SECTION, U.S.

20.500.12592/vfngzg

MEMORANDUM TO : THE FCPA COORDINATOR, CRIMINAL DIVISION, FRAUD SECTION, U.S.

26 Oct 2022

The State Capture Commission made the following recommendations in relation to Bain’s conduct at SARS (refer to page 714 of part 1: volume III of the report in this respect): “326.1 in the light of the facts pertaining to Bain’s unlawful role in SARS, all Bain’s contracts with state departments and organs of state be re-examined for compliance with the relevant statutory and constitutional provisi. [...] Bain wrote a draft of the RFP for SARS which was contrary to procurement legislation in South Africa.8 The RFP described in detail the scope of work that was to be performed, including a comprehensive organisational and strategy review of SARS and a redesign of SARS. [...] The former Minister, Mr Nene, said in evidence before us that as this was an operational matter he was required to endorse only the process, with the hope that the implementation would be reported back to him [61] What Mr Moyane represented to the Minister was untrue, both in what was said and in what was not disclosed. [...] [7] Much was sought to be made, in justification for the re- structuring, of the fact that the new organisational structure was presented to, and approved by, the SARS Advisory Board under the chairmanship of Judge Kroon, and then by the Minister of Finance. [...] The evidence shows that that was designed months before either of the parties was formally appointed.58 The above chronology depicts a scandalous account of how Bain conducted business with the South African government that led to the destruction of the South African tax agency.
Pages
154
Published in
South Africa